Important Years For Retirement Planning

October 29th, 2009 by David Leave a reply »

Time.com has published a series of 30 articles about retirement planning, I’m including an excerpt from an article that has an emphasis on those who are in their 30s…

“For one thing, you’re getting older. You’re not old by a long shot but the door is starting to close on the certainty of long-term investment gains. “The most powerful force in the universe is compound interest,” Albert Einstein famously declared. But the magic only happens through consistent saving over many, many years. Delay is costly. Consider: Had you started saving $5,000 a year in a Roth IRA at age 20 you would today be on track to accumulate $1.9 million by age 65 (assuming 8% annual returns). But now, at age 30, you need to save more than twice that amount each year ($11,200) to get the same result and if you are 40 you need to sock away $26,400 a year. The earlier you begin the less you need to save. In the example above, lifetime contributions that began at the age of 20 totaled just $225,000; at the age of 30, $392,000; and at 40, a staggering $660,000.”

Read the rest of this article and the others here.

Advertisement

1 comment

  1. Harry Swift says:

    Interest have a great demand in the market.

Leave a Reply